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OPINION
M&A trends and insights
M&A activity in the AEC industry surged in 2024, driven by private equity, regulatory investments, and strategic acquisitions.
A s we enter the last quarter of 2024, it’s clear that mergers and acquisitions activity in the architecture, engineering, and construction industry is gaining significant momentum. After a slow finish to 2023, the sector has seen a resurgence in deal-making, with notable increases in transaction volumes and continued interest from private equity firms. In this article, we’ll explore the key factors driving this surge, including the impact of regulatory initiatives, geographic trends, and the role of private equity. We’ll also look ahead to what AEC firms should expect in the final quarter of the year and beyond.
Alec Russell, MBA
M&A DEAL ACTIVITY IN 2024: A STRONG RECOVERY. At the close of Q3, the AEC industry has experienced a remarkable 33 percent increase in deal activity compared to the same period last year. This uptick follows a modest dip in Q2 2024, which aligned with typical cyclical trends. To date, the industry has seen 172 deals close in Q3 alone, a significant jump from the 129 deals in Q3 2023. The first half of 2024 mirrored prior years in deal activity, with 172 closings in Q1 2024 and 171 in Q1 2023, but the surge in Q3 signals that the industry is on solid ground as we head into the final months of the year. Driving this resurgence is the continued interest from serial buyers and large AEC firms backed by
private equity. Leading the charge is Verdantas, which has completed eight deals so far this year. Other active acquirers include Salas O’Brien, IMEG, SLR, Bowman Consulting Group, and Celnor Group, each closing seven transactions, while firms like Montrose Environmental Group and NV5 are right behind with six deals each. This level of activity from serial buyers is a clear sign of confidence in the industry’s long-term prospects. Larger firms are increasingly leveraging acquisitions to expand their geographic reach, diversify service offerings, and enhance specialized capabilities. This
See ALEC RUSSELL, page 4
THE ZWEIG LETTER OCTOBER 21, 2024, ISSUE 1558
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